NTPC Renewable Energy Limited (NTPC REL) has invited international competitive bids for procuring up to 2,000 MW/12,000 MWh of Interstate Transmission System (ISTS)-connected Pumped Hydro Energy Storage (PHES) capacity across India under a service-based model.
The tender, issued under IFB No. NRE-CS-2026-27-0000-SER-1, is aimed at supporting NTPC REL’s round-the-clock (RTC) renewable power requirements by integrating large-scale energy storage with its renewable energy portfolio.
Under the proposed arrangement, NTPC REL will provide charging power from its renewable energy assets, while selected PHES developers will operate and maintain the storage facilities on an “On-Demand” basis. Developers selected through the tender will enter into a 25-year Energy Storage Service Agreement (ESSA) with NTPC REL.
Key Highlights of the Tender
- Total PHES capacity: Up to 2,000 MW/12,000 MWh
- Minimum bid capacity: 500 MW/3,000 MWh at a single location
- Storage duration: Minimum six hours of single-cycle discharge
- Contract period: 25 years under ESSA
- Project commissioning timeline: Within 48 months of ESSA signing
- ESSA signing: Within three months of Letter of Award
- Connectivity: Developers responsible up to the ISTS substation
- Bidding mechanism: Single-Stage Two-Envelope process followed by online reverse auction
- Tariff basis: INR/MWh/year
- EMD: INR 10 lakh per MW
- Six-Hour Storage Requirement
The tender mandates a minimum 500 MW/3,000 MWh PHES capacity at a single location. The selected projects must be capable of delivering at least six hours of single-cycle discharge.
The storage capacity will allow renewable electricity generated during periods of high renewable output to be stored and dispatched when demand is higher or renewable generation is lower. This is expected to support NTPC REL’s efforts to provide firm and round-the-clock renewable power.
Multiple Project Categories Eligible
NTPC REL has opened the tender to a broad range of pumped hydro projects. Eligible projects include commissioned PHES facilities, projects under construction with approved Detailed Project Reports (DPRs) and required government clearances, new greenfield projects and augmentation of existing facilities.
Selected developers will also be responsible for establishing connectivity and the required transmission infrastructure up to the ISTS substation. Metering will be undertaken at the ISTS interconnection point.
25-Year Energy Storage Service Agreement
Under the service model, NTPC REL will provide charging power, while developers will make the storage capacity available for operation whenever required.
Successful bidders will receive payments through an annual fixed charge based on the financial bids submitted during the tender process. Capacity allocation will follow a “Bucket Filling” methodology based on the financial tariffs quoted by bidders in INR per MWh per year.
The bidding process will comprise a Single-Stage Two-Envelope procedure, followed by an online reverse auction.
Tender Timeline and EMD
NTPC REL issued the Hydro Storage tender on October 5, 2026. Bidding documents will be available for download until October 19, while the pre-bid conference and last date for submission of queries are scheduled for October 22.
Technical and financial bids must be submitted by 3:00 PM on November 3, 2026, with the technical bids scheduled to open at 3:30 PM on the same day. The date for the reverse auction will be announced separately.
Bidders are required to submit an Earnest Money Deposit (EMD) of INR 10 lakh per MW. For the minimum 500 MW bid, the EMD requirement would amount to INR 50 crore.
Registered Micro and Small Enterprises (MSEs) holding valid UDYAM registration, including eligible MSE-only consortiums, can receive complete exemption from the EMD requirement.
The tender represents a significant procurement opportunity for India’s pumped hydro sector as utilities increasingly turn to long-duration energy storage to integrate rising renewable generation and meet round-the-clock power requirements.
| Capacity | Up to 2,000 MW/12,000 MWh |
| Location | Anywhere in India |
| Last Date | 03/11/2026 |
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